Revenue from carbon tax tripled between 2017 and 2023

Between 2017 and 2023, revenues from carbon dioxide emissions taxes rose particularly sharply in the European Union. According to Eurostat, revenues increased from €15 billion to €51 billion, more than tripling. At the same time, the role of these taxes in the fiscal system has changed: their share of total energy taxes rose from 6.0% to 19.7%, indicating a systemic shift towards climate-oriented taxation.

In EU statistics, carbon taxes are defined as levies on the carbon content of fossil fuels, as well as taxes on other greenhouse gases. This category also includes government revenues from auctions of emission allowances under the EU Emissions Trading System, which strengthens the link between tax policy and market-based mechanisms for reducing emissions.

The revenue structure shows that the main financial burden falls on businesses. In 2023, companies accounted for 76.4% of all carbon tax revenues, while households contributed 22.3% and non-residents only 1.3%. This distribution reflects the EU's approach, whereby the key sources of emissions — industry and energy — become the main contributors.

When taxes are considered by type of economic activity (NACE classification), the energy sector, including the production and supply of electricity, gas, steam and air conditioning, ranks first, accounting for 30.1% of all carbon taxes. It was followed closely by manufacturing, with a share of 29.4%. This concentration highlights that energy-intensive industries remain the central target of climate fiscal policy.

The sharp increase in revenues over six years can be interpreted in two ways. On the one hand, it reflects higher rates and broader coverage of carbon taxation under the European Green Deal. On the other hand, it points to the economy's continuing dependence on fossil fuels, as significant revenues are only possible if emissions continue. In this sense, Eurostat data reflects not only the success of fiscal instruments, but also the scale of the task of actually reducing the carbon footprint of the EU economy.